According to data gathered by Trading Economics, January of 2016 was a lousy month for sales of new single-family homes in the United States. Purchases were down 9.2% from December; the lowest figure in three months and well below predictions.
Meanwhile, Nolo just wrapped up an online survey of viewers, asking about their satisfaction with their newly purchased homes. Among those who responded, 74% had bought from a developer, and 25% had hired their own contractor.
But only 22% were satisfied with the quality of the construction. An overwhelming number–91%–have found home defects since buying, and 96% are contemplating legal action.
Uh oh. Now, it should be said that this was a small survey (fewer than 100 respondents), and anyone searching for information on Nolo is likely to have an existing reason for doing so, perhaps dissatisfaction with their home and questions about filing a lawsuit.
But it does fit a long-observed pattern within the real estate industry. “New” does not equal “risk-free” when it comes to a structure as complex as a home. In fact, with shortages of skilled labor, new homes can come with major defects.
To find out how to protect yourself as a buyer, see Newly Built Houses: Pros and Cons of Buying. And if you’ve already bought and are encountering defects, you’ll want to check out Nolo’s series of articles on Suing Your Home Builder: Legal Rights in Selected States.